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SPECBL CIRCULAR RECENTLY REVISED 



The Special Circular #212-G entitled "Varieties of Grapes for Massachusetts" 

 has been revised and is available to anyone wishing a copy. Address requests to 

 either the Department of Pomology or the Mailing Room, University of Massachusetts, 

 Ajnherst. 



Editor 



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LIFE INSURAI'^CE FOR FARIffiRS 



Life insurance policies are contracts which provide that an insurance company 

 guarantees the heirs of the insured a certain agreed sum of money to be paid when 

 the insured dies. Cost is met by payments of premiums during the insured's life- 

 time . 



Iijlany different variations of contracts are available and designed to meet 

 Special needs or desires of the insured. Some common types are given belovir. 



Ordinary or TJhole Life insurance contracts are a type of policy in which the 

 insured pays premiums until he dies or until he selects an option giving him "paid- 

 up" insurance. The proceeds of the contract are payable at death' though the. policy 

 builds up a loan or cash surrender value during his lifetime. This is the simplest 

 and most common type of life insurance policy and gives the most permanent protection 

 for the money spent. 



Limited Payment Life policies give permanent protection and provide for payment 

 of the face amount of the policy at the time of death. They also have a cash 

 surrender or loan value that builds up as the insured pays premiums. It is different 

 from the Ordinary life policy mainly in the premiums are completely paid up over 

 a definite and limited period of time. Limited Payment Life policies are normally 

 T/ritten at 20 to 30 year periods though they may read "paid up at 55" or "65" etc. 

 Though the premium payment stops at the end of this period, the insurance protection 

 continues. This has the advantage of enabling the insured to pay premiums during 

 the years when he is most productive and earnings are most dependable. Since the 

 time of premium payments is shortened, each individual payment is larger. The 

 overall cost is much the same for the two types of policies. 



Endowment policies provide life coverage v/ith an additional emphasis on a sav- 

 ings or investment plan. This type of contract provides for payment of the face 

 amount of the insurance contract either in the event of death of the insured during 

 the endowment period or upon his survival at the end of the period. The insured has 

 life insurance protection for the term of the endoi/raient but the contract is 

 dissolved at the end of the period and he is paid the face amount of the policy in 

 a lump sum or installments. The period selected is usually 20 to 30 years though 

 the policy may read that the endowment periods ends at age li8, S^f 65^ etc. Depend- 

 ing on the length of the endowment period this is usioally the most expensive type 

 of life insurance (the least amount of protection per dollar of premium,) 



